Abu Musa island is located 75 kilometres (47 mi) south of Bandar Lengeh and 63 kilometres (39 mi) north-northwest of Sharjah. Out of 14 islands of Hormozgan it is the island farthest from the Iranian coast. Its highest point is the 110 metres (360 ft) Mount Halva.[7] Abu Musa city is the center of the island. The weather in Abu Musa is warm and humid, although, compared to the place in the Persian Gulf, Abu Musa has a better climate and the most diverse ecosystem, but it lacks suitable soil and water for farming leaving fishing as the main industry for locals. It is one of the main ports for exporting oil from Iran.

A 1891 map showing Abu Musa as part of the Iranian territory. Two dotted lines show telegraph cables.

The sovereignty of Iran on Abu Musa has been disputed by UAE, which inherited the dispute in 1971.[8][9] By common consent, the island had been under the control of the Qasimi ruler of Sharjah.[10][11] In 1906, the ruler of Sharjah's uncle awarded a concession for the iron oxide deposits of Abu Musa to three Arabs, whose workers extracted the mineral and agreed to sell it to Wonckhaus, a German enterprise. However, when the ruler discovered this, he cancelled the concession and the workers were removed from the island with assistance from the British, resulting in an international incident.[12][13]

After 1908, the UK controlled the island along with the other British-held islands in the Persian Gulf, including what is today the UAE. In the late 1960s, Britain transferred administration of the island to the British-appointed Sharjah, one of the seven sheikdoms that would later form the UAE.

After Britain announced in 1968 that it would end its administrative and military positions in the Persian Gulf, Iran moved to reattach the island politically to the mainland. On November 30, 1971 (two days before the official establishment of UAE), Iran and Sharjah signed a Memorandum of Understanding. They agreed to allow Sharjah to have a local police station and Iran to station troops on the island according to the map attached to the Memorandum of Understanding.[11] The agreement also divided the island's energy resources between the two signatories. "By agreeing to the pact, the tiny emirate prevented an invasion by Iran, which two days earlier had taken two other disputed islands, Greater and Lesser Tunb, which were even smaller and uninhabited."[14]

One day before the UK officially left the region, Iran stationed its troops on the island and was officially welcomed by the Sheik of Sharjah's brother; Sheik Saghar.[15]

The UAE took its sovereignty claim over Abu Musa and the two Tunb islands to the 9 December 1971 meeting of the United Nations Security Council. At that meeting, it was decided to "defer consideration of this matter to a later date".[16][17] Iraq (Ahmed Hassan al-Bakr era),[18] Kuwait,[19] Algeria,[20]South Yemen[20] and Libya[20] held the view that the territory rightfully belongs to the UAE.[21][22][23][24][25] Since that time, the UAE has consistently called in public statements[17][26] for either bilateral negotiations or by referring the issue to the International Court of Justice (or another form of international arbitration).[27]

Saddam Hussein attempted to justify the Iran-Iraq War by claiming that one of the objectives was to "liberate" Abu Musa and Greater and Lesser Tunbs in the Persian Gulf. In 1992, Iran expelled foreign workers who operated the UAE-sponsored school, medical clinic, and power-generating station.[28] The Island dispute has also caused serious friction between Ras al-Khaimah and Sharjah on one hand and some other emirates of the UAE on the other hand. Ras Al Khaimah advocates tough measures against Iran. Dubai, on the other hand, believes that the conflict is unnecessary. The present ruler of Dubai (who is also Vice President, Prime Minister and Defence Minister of the UAE), Sheikh Muhammad, has earlier stated publicly that "he believes the tensions over the islands have been fabricated by the United States".[29]

In 2012 a visit to the island by Iranian president Ahmedinejad provoked a diplomatic incident.[30] Iran's historical claim to ownership over the islands roots back to the Parthian and Sassanid Empires, among others.[31] Iran considers the island to have been occupied by the UK and refers to the agreement between Iran and the emirate of Sharjah in 1971.[11]

^Ibrahim Abed; Peter Hellyer (2001). United Arab Emirates: A New Perspective. Trident Press Ltd. pp. 182–. ISBN978-1-900724-47-0. Iran claims Abu Musa Territorial and political ambitions, combined with the economic interests of influential elements within the government, helped strengthen the first Iranian claim to the island of Abu Musa in 1904. Iran began to challenge ...